While the Atlanta industrial real estate market took a step forward during the fourth quarter of 2011, the market definitely took a step back in the first quarter of 2012. According to Sim Doughtie, President of King Industrial Realty, "Hold on tight because I do not believe the roller coaster ride is quite over yet!"
Thursday, April 19, 2012
Monday, March 26, 2012
Baby Steps......
"The Atlanta Industrial Real Estate market took another step - albeit a baby step - forward in the march toward recovery in the fourth quarter of 2011" per 4th Quarter 2011 Point Of View.
Tuesday, July 19, 2011
The Journey of a Thousand Miles . . .
. . . begins with a single step and the second quarter of 2011 is showing signs that the Atlanta industrial market may have made that first step toward recovery.
After 10 consecutive quarters of negative net absorption, the second quarter of 2011 broke free with 1,707,652 square feet of positive net absorption. In recent quarters, we have been observing some trends that were pointing toward a return to positive net absorption - most notably higher levels of activity.
Activity in the second quarter of 2011 was further evidence we are on the road to recovery. Activity remained steady at 731 deals totaling 11,927,253 square feet. Combine this with the first quarter’s level of 12,082,742 square feet and we are looking at just over 24 million square feet at mid-year. If we are able to continue at this pace, year-end activity would finish at 48 million – a level not seen since 2007.
There are two factors that are predominantly responsible for this uptick in activity. First, some larger companies are continuing to consolidate from two or three locations to one larger facility. Czarnowski Exhibit Service is a perfect example of this consolidation. They returned three locations totaling 434,000 square feet to the market, but took one space for 568,000 square feet off the market. This one consolidation resulted in positive net absorption of 134,000 square feet.
The second factor we are seeing is the smaller firms and “mom-and-pop” shops getting off the sidelines and into the game. Unlike some of their competitors, they have survived this latest economic downturn and are looking to pick up the customers those competitors controlled. To properly service these new customers, however, they need to expand their business operations. Publisher Services, Inc. is an example of this type of expansion. During the second quarter of 2011, this company added 40 percent to its foothold in the Norcross area.
No one can predict if these trends will continue and we have many miles to go before we pull ourselves out of the lows we have experienced over the last three years. But, unless we experience some unforeseen major world event, we believe the Atlanta industrial market has taken the first step in that journey.
Sim F. Doughtie, CCIM, SIOR, MCR
President
Submarket trends and summaries can be downloaded instantly here.
After 10 consecutive quarters of negative net absorption, the second quarter of 2011 broke free with 1,707,652 square feet of positive net absorption. In recent quarters, we have been observing some trends that were pointing toward a return to positive net absorption - most notably higher levels of activity.
Activity in the second quarter of 2011 was further evidence we are on the road to recovery. Activity remained steady at 731 deals totaling 11,927,253 square feet. Combine this with the first quarter’s level of 12,082,742 square feet and we are looking at just over 24 million square feet at mid-year. If we are able to continue at this pace, year-end activity would finish at 48 million – a level not seen since 2007.
There are two factors that are predominantly responsible for this uptick in activity. First, some larger companies are continuing to consolidate from two or three locations to one larger facility. Czarnowski Exhibit Service is a perfect example of this consolidation. They returned three locations totaling 434,000 square feet to the market, but took one space for 568,000 square feet off the market. This one consolidation resulted in positive net absorption of 134,000 square feet.
The second factor we are seeing is the smaller firms and “mom-and-pop” shops getting off the sidelines and into the game. Unlike some of their competitors, they have survived this latest economic downturn and are looking to pick up the customers those competitors controlled. To properly service these new customers, however, they need to expand their business operations. Publisher Services, Inc. is an example of this type of expansion. During the second quarter of 2011, this company added 40 percent to its foothold in the Norcross area.
No one can predict if these trends will continue and we have many miles to go before we pull ourselves out of the lows we have experienced over the last three years. But, unless we experience some unforeseen major world event, we believe the Atlanta industrial market has taken the first step in that journey.
Sim F. Doughtie, CCIM, SIOR, MCR
President
Submarket trends and summaries can be downloaded instantly here.
Tuesday, May 10, 2011
Two Great SBA Loan Programs
"If you are looking for a loan to purchase a warehouse and you plan to occupy it, you should take a look at the SBA program. They have very attractive rates and a low down payment. You have a choice of two different programs and Jennifer Hall provided me with an overview of the program. If you have any questions give Jennifer a call as she is a wonderful resource."
- Charlie King
See the details and then call...
Thursday, April 21, 2011
Action Accelerates Activity - 1st Quarter 2011
As we embark on a new year, King Industrial Realty introduces a new format for our Point of View. In 1988, when we began tracking the industrial market, our records held an inventory of 200 million square feet in the metro Atlanta area. As time progressed, not only did the square footage of that inventory grow, but the geographic area holding that inventory continued to stretch beyond the boundaries of our original 12 counties.
Beginning with this issue of the Point of View, our reporting has expanded to include 20 counties and over 600 million square feet. With this expansion, new regions have been created which are detailed on the map on page four. We feel confi dent that the addition of these outlying counties will provide you a broader and more accurate picture of the Atlanta industrial market.
This quarter, in particular, shows the effect the addition of these geographic areas has on the overall picture for the industrial market. The sublease offering of the 1.3 million square foot Solo Cupspace in Walton County accounts for the large majority of the negative net absorption recorded in this first quarter of 2011. While it would be nice to take this factor out of the equation, the broader picture is more complete when all aspects are brought into play.
With net absorption still in negative territory at -1,484,869 square feet, it’s hard to say we are climbing out of the trench dug over the past four years. However, there are a few positive indicators we want to keep our eyes on. The first quarter 2011 activity of 12,082,742 square feet represents a 46 percent increase over the previous quarter and is the highest level seen since the third quarter of 2008. We are interpreting this as a sign tenants are moving off the fence and making decisions that they may have been postponing in the past.
We have also noticed that lease terms are beginning to increase. In the first quarter of 2011, 25 percent of new leases executed in the King Industrial Realty offices were for a term of five years and longer. This percentage is up from 11 percent during the first quarter of 2009 and up from 12 percent in the first quarter of 2010. Additionally, we saw a 25 percent increase in the number of new leases executed in the first quarter of 2011 as compared to the same period last year.
Again, an indication that tenants are taking action and locking in on favorable market conditions. Although we did not expect to see positive net absorption in the first quarter of 2011, we are optimistic that within the next quarter or two we will begin to see a shift to positive net absorption.
Submarket trends and summaries can be downloaded instantly here.
Sim F. Doughtie, CCIM, SIOR, MCR
President
Monday, February 28, 2011
Owner Occupied Bank Rates
"If you are looking to purchase a warehouse for your use, you need to consider acting before the rates go up. Below is the most recent rate sheet for owner occupied properties from IronStone Bank." - Charlie King
Owner Occupied Commercial Real Estate
We distinguish ourselves in the market by being relationship driven, competitively priced, and firmly committed to exceptional service.
*** Rates as of February 15, 2011 (subject to change) ***
Take advantage of any of these great features for new construction:
· Single loan and single closing for both construction and permanent phases.
· Interest only during construction phase
· Option to lock rate at the front end for both the construction and permanent loan.
· SBA loans available
* Normal credit approval applies. Loan rates are effective as of 2-15-11 and are subject to change. Actual APR may be impacted by fees, rates, loan amounts, and terms.
* For loan requests less than $500,000 add 25 bps
For more information, please call:
Joe Bennett
Vice President
Business Banking
678.494.8652 Office
404.374.7374 Cell
678.494.8667 Fax
joseph.bennett@ironstone.com
Owner Occupied Commercial Real Estate
We distinguish ourselves in the market by being relationship driven, competitively priced, and firmly committed to exceptional service.
*** Rates as of February 15, 2011 (subject to change) ***
Take advantage of any of these great features for new construction:
· Single loan and single closing for both construction and permanent phases.
· Interest only during construction phase
· Option to lock rate at the front end for both the construction and permanent loan.
· SBA loans available
* Normal credit approval applies. Loan rates are effective as of 2-15-11 and are subject to change. Actual APR may be impacted by fees, rates, loan amounts, and terms.
* For loan requests less than $500,000 add 25 bps
For more information, please call:
Joe Bennett
Vice President
Business Banking
678.494.8652 Office
404.374.7374 Cell
678.494.8667 Fax
joseph.bennett@ironstone.com
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